MLG Capital Acquires Brookside Park and Kagy Village Multifamily Assets in Bozeman, Marking First Montana Investment

MLG Capital has added two multifamily communities in Bozeman, Montana to its Legacy Fund, the Brookfield, Wisconsin-based private real estate investment firm announced July 22. The contribution of Brookside Park and Kagy Village represents MLG Capital's first entry into the Montana market and extends the Legacy Fund's geographic footprint into the Mountain West.

Deal Structure: Original Developer Exchanges Assets for Fund Interest

The transaction was structured as a contribution rather than a conventional sale. Brookside Park and Kagy Village were developed, owned, and self-managed by the original developer since construction. After evaluating the Legacy Fund's performance and strategy over several years, the ownership group elected to contribute both properties in exchange for an ownership interest in the fund.

The structure allowed the original developer to exit day-to-day property management while maintaining exposure to commercial real estate through the Legacy Fund's diversified portfolio. MLG Capital's Legacy Fund is designed specifically for owners of appreciated real estate seeking a tax-efficient transition from active ownership to a more passive investment approach. Through such contribution transactions, owners may exchange individual properties for an interest in a professionally managed portfolio spanning multiple markets and property types.

Contribution structures of this kind have drawn increased attention from long-term owners who face substantial capital gains exposure from outright sales. By contributing assets rather than selling, owners may defer gains at the asset level — subject to individual tax circumstances — while gaining diversification across a broader portfolio. The approach has emerged as an alternative to 1031 exchanges for owners seeking passive exposure rather than a direct replacement asset.

"Transactions like these highlight the value of long-term relationship building and a disciplined investment approach," said Billy Fox, Principal and President at MLG Capital. "We were able to stay engaged over several years and ultimately structure a solution that aligned with the ownership group's goals while adding high-quality assets to the Legacy Fund."

Off-Market Sourcing and Relationship-Driven Strategy

MLG Capital characterized the deal as the product of a multi-year relationship with the ownership group rather than a competitively marketed process. The firm's engagement over several years before the contribution closed reflects a sourcing approach centered on direct relationships with long-term owners, particularly those managing assets they originally developed.

The Bozeman transaction fits a broader pattern for the Legacy Fund. The fund previously acquired a four-property, 290-unit East Bay portfolio as part of year-end 2025 multifamily activity, alongside acquisitions through MLG Capital's Private Fund VII. The Legacy Fund's growth has been concentrated in stabilized multifamily portfolios in markets characterized by population growth and housing demand.

Bozeman Market Context: MSU Proximity and Regional Growth

Brookside Park and Kagy Village are located adjacent to Montana State University, one of Montana's largest public universities. The university is a significant driver of housing demand, employment, and economic activity in the Bozeman area, and proximity to its campus is a key characteristic of both assets.

Bozeman has recorded notable population growth in recent years, driven in part by in-migration from higher-cost markets attracted by the area's outdoor recreation access and lifestyle amenities. The region has also seen expansion in technology-related employment and other industries, contributing to sustained housing demand. MLG Capital cited population growth, economic diversification, and multifamily fundamentals as factors supporting its regionalized investment strategy in the Mountain West.

Unit counts, valuation, and debt details were not disclosed in the announcement.

About the Legacy Fund

MLG Capital sponsors private real estate funds targeting investment from investment advisors, family offices, and accredited individuals. The Legacy Fund is structured to provide contributors with a diversified, professionally managed portfolio in exchange for contributed real estate assets, reducing direct management responsibilities while maintaining income participation across multiple markets and property types. The Bozeman contribution expands the fund's presence in the Mountain West as part of MLG Capital's regionalized investment strategy.

Sources:
MLG Capital — MLG Capital Expands Legacy Fund with Entry into Montana Market (July 22, 2026)